A Delaware judge this morning granted an injunction sought by Shamrock Holdings Inc. to keep Polaroid from completing its share repurchase program, one of the key elements in the instant camera company’s fight against a Shamrock takeover.
Shamrock had said earlier today that if the injunction was not granted, it would tender its 4.9 million Polaroid shares. Vice Chancellor Carolyn Berger of the Delaware Chancery Court granted the injunction for one week while Shamrock appeals her rulings of last week to the Delaware Supreme Court. She said the week would give the higher court time to decide if it will accept the appeal. Berger ruled Friday that Polaroid can go ahead with its plan to buy back 22% of its shares and reaffirmed the company’s controversial employee stock ownership plan.
Shamrock claims the stock buyback plan would stack the deck in favor of Polaroid management in a proxy fight.